Laws related to industrial disputes, occupational safety, health and working conditions of workers, laws related to trade unions, contract and migrant workers may stay suspended for 3 years.
Uttar Pradesh government has approved an ordinance that exempts businesses from from almost all labour laws. The overall economy has been badly hit considering the Covid-19 pandemic, and this move is expected to boost the economy and this move is aimed at reviving the economy and bringing in investments.
The ordinance – ‘Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020’, exempts establishments, businesses, manufacturing facilities – factories and industries from the purview of almost all labor laws for three years.
As per a press statement from the government – “The horticultural and economical activities in the states have been severely affected and slowed down due to the outbreak of Covid-19. This is because businesses and economic activities came to a halt more or less due to the national lockdown.”
According to the statement released by the state government, only the following laws will apply in the entire state, with rest of the labour laws being suspended.
- Building and Other Construction Workers Act, 1996
- Workmen Compensation Act, 1923
- Bonded Labour System (Abolition) Act, 1976, and
- Section 5 of the Payment of Wages Act, 1936 (the right to receive timely wages)
The other labour laws will cease to be applicable for the period of exemption. The move applies to existing as well as new business. Laws related to industrial disputes, occupational safety, health and working conditions of workers, laws related to trade unions, contract and migrant workers, will also not be applicable.
While the move is expected to be business friendly and allows for the businesses to be more flexible, the move can be severely damaging to workers rights and welfare. The ordinance is to be sent to central government for approval.
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